[The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costa PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $3,000,000 1.001.000 215,600 77,000 300,000 201,000 231,000 249,000 456,400 195,000 $ 154,000
[The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costa PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $3,000,000 1.001.000 215,600 77,000 300,000 201,000 231,000 249,000 456,400 195,000 $ 154,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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[The following information applies to the questions displayed below]
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15.400
units.
Sales
Costs
PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Direct materials
Direct labor
Sales staff commissions
Depreciation Machinery
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-office equipment
Income
$ 3,080,000
1,001,000
215,600
77,000
300,000
201,000
231,000
249,000
456,400
195,000
$ 154,000
Required:
1&2. Prepare flexible budgets at sales volumes of 14,400 and 16,400 units.
3. The company's business conditions are improving. One possible result is a sales volume of 18,400 units. Prepare a simple budgeted
income statement if 18,400 units are sold.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb7a826b-700f-4643-814e-b17be20f9033%2Fc0b0822c-c95f-4dcc-b42f-11a5dff8e2d6%2Fle9t87_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
[The following information applies to the questions displayed below]
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15.400
units.
Sales
Costs
PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Direct materials
Direct labor
Sales staff commissions
Depreciation Machinery
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-office equipment
Income
$ 3,080,000
1,001,000
215,600
77,000
300,000
201,000
231,000
249,000
456,400
195,000
$ 154,000
Required:
1&2. Prepare flexible budgets at sales volumes of 14,400 and 16,400 units.
3. The company's business conditions are improving. One possible result is a sales volume of 18,400 units. Prepare a simple budgeted
income statement if 18,400 units are sold.
Transcribed Image Text:Sales
Variable costs
Direct materials
Fixed costs
Req 1 and 2
Req 3
PHOENIX COMPANY
Budgeted Income Statement
For Year Ended December 31
Sales (in units)
For Year Ended December 31
Flexible Budget
PHOENIX COMPANY
Flexible Budgets
18,400
0
Variable Amount Total Fixed
per Unit
Cost
$
200.00
0.00
< Req 1 and 2
$
The company's business conditions are improving. One possible result is a sales volume of 18,400 units. Prepare a simple
budgeted income statement if 18,400 units are sold.
Flexible Budget for:
Units Sales Unit Sales of
of 14,400 16,400
$ 2,880,000 $3,280,000
0$
Reg 3 >
0
0 $
0
0
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